Hiring plans flat for SD companies

The Manpower Employment Outlook study reports that 19 percent of San Diego businesses surveyed plan to add to their staffs in the third quarter of 2013.

That's the same percentage as forecast a year ago, and for the current quarter.

The outlook surveys the same 120 local businesses from a variety of sectors each quarter, asking whether each plans to increase, reduce, or maintain staffing levels in the coming three months. Companies can also reply that they don't know.

Additionally, the study reported a slight uptick in layoff plans for the third quarter of 2013, from 6 percent to 8 percent (or 2.5 companies).

Still, payroll jobs in San Diego are growing and unemployment is down, state data shows. The jobless rate in San Diego County in April was 7 percent, down from 8.6 percent since a year earlier and the lowest since November 2008. In the last 12 months, county employers added 25,100 nonfarm payroll jobs.

Phil Blair, CEO of San Diego's Manpower staffing agency, said he felt the outlook was positive. If the percentage of companies planning to hire hasn't fallen, then that means by definition year-over-year more people are working. He said he's seeing more temporary workers trying to negotiate higher hourly rates, and that his orders for temporary workers are up 25 percent from last year.

"There are more people working," Blair said. "So if employers are still optimistic and still hiring, I see that as a really good sign."

Lynn Reaser, chief economist at Point Loma Nazarene University, said uncertainties over the $1.2 trillion of federal spending cuts that began in March, called sequestration, and increases in payroll taxes and health care costs could be keeping businesses cautious.

"It is clear that companies continue to carefully monitor their costs of operations because of little latitude to raise prices, and continue to look for productivity increases," she said. "Nevertheless, rising sales and business opportunities across a number of sectors, including those linked to housing, are boosting the employment picture."

The Manpower study is released in 100 metropolitan areas. In total, 18,000 employers were surveyed.

The study calculates a Net Unemployment Index for each area by subtracting the percentage of employers with layoff plans from the percentage of those that plan to add to their staffs.

San Diego's net index fell two points to 11, given the slight uptick in layoff plans. It was at 13 last quarter and at this time last year.

Statewide, 21 percent of the companies surveyed in California plan to hire in the third quarter, with 6 percent planning layoffs. That's an index of 15 percent. California had a seasonally adjusted 9 percent unemployment in April.

Los Angeles had the state's worst outlook, with 13 percent planning to hire, and 6 percent planning layoffs. Los Angeles County had an unadjusted 9.3 percent jobless rate in April.

Across the nation, Manpower reports that 22 percent of businesses surveyed plan to hire and 6 percent plan layoffs. The nation's jobless rate was a seasonally adjusted 7.6 percent in May.

In addition to Los Angeles, regions with the most negative outlooks included four in Florida: Cape Coral, Tampa, Lakeland, and Bradenton. Also ranking poorly were Honolulu, New Haven, Conn, and Lexington, Ky.